Nature’s Sunshine Products (NASDAQ:NATR) lowered its full-year 2026 sales and earnings outlook after third-quarter revenue fell 9%, as weakness in China and Taiwan and a slowdown in its North American digital business weighed on results.
Net sales for the quarter ended September 30 were $116.6 million, down 7% from a year earlier excluding foreign exchange effects. Unfavorable currency movements added 2 percentage points to the decline, Chief Financial Officer Ruth Perkins said on the earnings call.
“Simply put, we had a poor quarter that fell well short of our expectations,” CEO Ken Romanzi said. He added that it would take a few quarters to work through the issues affecting the business.
The company now expects 2026 net sales of $460 million to $470 million, down from its August forecast of $490 million to $500 million. It also reduced its adjusted EBITDA outlook to $44 million to $48 million from $48 million to $52 million.
China Weakness Weighs on Asia-Pacific Sales
Asia-Pacific sales fell 15% to $55 million, including a 4-percentage-point unfavorable currency impact. China accounted for most of the decline, with sales down 52% on a constant-currency basis, Perkins said.
Romanzi attributed the weakness in part to the unexpected deaths earlier in the year of two leaders in one consultant base. He said the impact had been greater and more lasting than anticipated.
The company also tightened selling practices at another consultant base after identifying practices inconsistent with its policies. Romanzi said the changes disrupted recruiting and business-building activity, and that the distributor base would need to be rebuilt in a more compliant way.
Perkins said China is expected to remain a headwind into 2027. Romanzi nevertheless described the country as an attractive long-term opportunity, noting that Nature’s Sunshine generated $40 million in Chinese revenue in 2025.
Taiwan also remained weak as its consultant base declined, although growth in Japan partially offset the pressure. Romanzi said the company plans to open a third consultant base in Japan, in Osaka, in 2027.
Digital Sales Decline as Comparisons Get Tougher
North American sales fell 6% to $34 million, while digital sales declined 1% after several quarters of strong growth. Romanzi said the business faced tougher comparisons as it lapped its expansion on TikTok and the popularity of a product that went viral in 2025.
Romanzi said paid search had also become less effective amid the emergence of AI agents. The company plans to invest in software tools to improve search and other digital capabilities, he said.
Despite the quarterly decline, Romanzi said he expects the digital business to grow for the full year. Perkins noted that subscription autoship accounted for 40% of digital sales, up from 30% a year earlier. Within social commerce, autoship rose to 53% of revenue from 9%.
Europe sales increased 1% on a constant-currency basis to $22.1 million, as 7% growth in Eastern Europe was largely offset by softer Central European results, Perkins said.
Margins and Growth Plans
Third-quarter gross margin declined to 72.9% from 73.3%, primarily because of unfavorable foreign exchange. Adjusted EBITDA fell to $11.1 million from $15.2 million, primarily due to lower revenue. Selling, general and administrative expenses declined to $42.3 million from $45.7 million.
Nature’s Sunshine ended the quarter with $89.4 million in cash and cash equivalents and no debt. It repurchased approximately 232,000 shares for $3.5 million, leaving $11.3 million under its authorization, Perkins said.
Romanzi reaffirmed the company’s longer-term goals of reaching $1 billion in sales and a 15% EBITDA margin. Its plans include a revamped U.S. direct selling program by mid-2027, with a new product lineup, compensation plan and recruiting incentives. The company also plans to launch a women’s health product across its Synergy business in Japan, Korea and Taiwan.
Acquisitions remain part of the growth strategy, although Romanzi said their timing is uncertain. He said the company recently ended due diligence on an opportunity after 30 days because it was concerned about the target’s revenue profile, and plans to broaden its search for candidates.
About Nature’s Sunshine Products (NASDAQ:NATR)
Nature’s Sunshine Products, Inc develops and sells natural health and wellness products through direct selling, e-commerce and other distribution channels. Its product portfolio includes dietary supplements, herbal supplements, vitamins, minerals, essential oils, sports nutrition products and personal-care items.
The company markets products primarily under the Nature’s Sunshine and Synergy WorldWide brands. Nature’s Sunshine focuses on nutritional and herbal wellness products, while Synergy offers supplements and performance-oriented nutrition products.
